Fox holds investor calls ahead of an expected Roku-deal bond offering
Mononews, citing Bloomberg, says about seven investment-grade tranches from three to 40 years are expected after the Nov. 6 close.
By Marcus Rodriguez ·
Why it matters: Fox expects to refinance the 364-day bridge that funded part of the Roku cash deal with longer senior unsecured bonds.
For information only, not investment advice. Prices delayed.
Fox Corporation ($FOXA, $FOX) is holding investor calls Monday ahead of an expected multipart investment-grade bond offering tied to its cash-and-stock purchase of Roku, Mononews reported, citing Bloomberg.1 Mononews, in a report attributed to Bloomberg, cited an unnamed person familiar with the matter who said Fox expects about seven investment-grade bond tranches with maturities from three to 40 years.1
Fox said Nov. 6 it completed the Roku acquisition.2 Roku holders received $95.30 in cash and 0.9799 Fox Class A shares per Roku share, and Fox said existing holders own about 74% of outstanding Fox common stock while former Roku holders own about 26%.2 Mononews put the deal's enterprise value at $22 billion and said it closed Friday, less than five months after it was announced.1
On the closing date Fox borrowed $8.4 billion under a bridge facility to pay part of the cash consideration, and another $2.0 billion of term loans under an amended and restated term loan agreement, its Form 8-K says.3 The bridge matures 364 days after closing.3 Trend & Ticker, citing the same filing, put the new loans drawn at closing at $10.4 billion.5 Fox also entered a $1.5 billion five-year revolving credit facility it may ask to raise to $2.25 billion.3
In a pro forma exhibit, Fox said it expects additional financing after the merger close, including the issuance of senior unsecured debt to refinance borrowings under the bridge facility — what the company labels Permanent Financing.4
Fox also said it expects about $400 million of run-rate cost synergies within two years after close and that the transaction should be accretive to free cash flow per share by the second full year after closing.2
Sources
- Fox: Πραγματοποιεί διασκέψεις με επενδυτές πριν την προγραμματισμένη έκδοση ομολόγων για τη συμφωνία με τη Roku, Mononews (Bloomberg)
- Fox Completes Acquisition of Roku (Form 8-K, Exhibit 99.1), Fox Corporation (SEC)
- Fox Corporation Form 8-K — Roku closing financing, Fox Corporation (SEC)
- Unaudited Pro Forma Condensed Combined Financial Information (Exhibit 99.4), Fox Corporation (SEC)
- Fox Roku acquisition closes with $10.4 billion of new loans, Trend & Ticker
Tags: mergers-acquisitions · interest-rates · markets-moves